Ascendis Pharma A/S Authorizes $25 Million for Share Repurchase Program and RSU Net Settlement

Ascendis Pharma plans to utilize $25 million for share repurchases and net settlement of RSUs, preserving 200,000 ADSs.

Quiver AI Summary

Ascendis Pharma A/S announced that its Board of Directors approved a plan to allocate approximately $25 million in the first quarter of 2025 for a share repurchase program and the net settlement of restricted stock units (RSUs). The company aims to repurchase up to $18.25 million worth of its American Depositary Shares (ADSs) while also managing tax-related obligations for approximately 450,000 RSUs, which would conserve around 75,000 ADSs as treasury shares. This initiative is expected to preserve a total of 200,000 ADSs held as treasury shares, with repurchases being executed in accordance with U.S. securities regulations. The details regarding the timing and execution of this repurchase were left flexible, allowing management to respond to market conditions. Ascendis remains committed to utilizing its TransCon technology platform to develop innovative therapies, while also highlighting the potential risks involved in their forward-looking statements.

Potential Positives

• The Board of Directors has authorized a significant share repurchase program of up to $18.25 million, indicating confidence in the company's value and commitment to return capital to shareholders.
• The share repurchase and net settlement of RSUs aim to preserve approximately 200,000 ADSs as treasury shares, which can enhance shareholder value through reduced share dilution.
• The planned execution of the repurchase program in compliance with U.S. securities regulations could strengthen investor trust in the company's governance and financial strategies.
• Ascendis Pharma's focus on applying its innovative TransCon technology platform to develop potentially best-in-class therapies positions the company as a forward-thinking leader in the biopharma industry.

Potential Negatives

• The reliance on repurchasing shares and net settling RSUs may indicate financial instability or a lack of better investment opportunities, raising concerns about the company's long-term growth prospects.
• The absence of a commitment to repurchase a specific number of shares suggests potential volatility and uncertainty in the company's stock, which may affect investor confidence.
• The emphasis on forward-looking statements and associated risks may highlight underlying operational challenges and dependence on external factors, potentially undermining investor trust in the company's future performance.

FAQ

What is the purpose of Ascendis Pharma's $25 million funding?

The funding aims to support a share repurchase program and net settlement of certain RSUs.

How much of the funding will be used for the Share Repurchase Program?

Approximately $18.25 million will be allocated for the Share Repurchase Program.

What are ADSs in relation to Ascendis Pharma?

ADSs, or American Depositary Shares, represent one ordinary share of Ascendis Pharma A/S.

When does Ascendis Pharma plan to execute its share repurchase?

Repurchases will take place in the first quarter of 2025, depending on market conditions.

What compliance rules will Ascendis follow for repurchases?

Ascendis will comply with U.S. securities regulations, specifically Rules 10b-18 and 10b5-1.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$ASND Hedge Fund Activity

We have seen 120 institutional investors add shares of $ASND stock to their portfolio, and 103 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

• T. ROWE PRICE INVESTMENT MANAGEMENT, INC. added 1,734,478 shares (+5674.9%) to their portfolio in Q3 2024, for an estimated $258,974,910
• AVORO CAPITAL ADVISORS LLC added 792,227 shares (+18.9%) to their portfolio in Q3 2024, for an estimated $118,287,413
• SOFINNOVA INVESTMENTS, INC. removed 734,284 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $109,635,944
• CAMBER CAPITAL MANAGEMENT LP added 700,000 shares (+inf%) to their portfolio in Q3 2024, for an estimated $104,517,000
• PARADIGM BIOCAPITAL ADVISORS LP removed 664,307 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $99,187,678
• WELLINGTON MANAGEMENT GROUP LLP removed 557,305 shares (-44.2%) from their portfolio in Q4 2024, for an estimated $76,724,179
• TIMESSQUARE CAPITAL MANAGEMENT, LLC removed 500,920 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $68,961,656

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Full Release

– Expected use of approximately $25 million in first quarter of 2025 intended to preserve approximately 200,000 ADSs held as treasury shares

COPENHAGEN, Denmark, Feb. 12, 2025 (GLOBE NEWSWIRE) -- Ascendis Pharma A/S (Nasdaq: ASND) today announced that its Board of Directors has authorized the Company to use approximately $25 million to fund a share repurchase program and net settle certain RSUs.

The Board of Directors has authorized the Company to repurchase up to $18.25 million of the Company’s American Depositary Shares (ADSs) (the Share Repurchase Program), each of which represents one ordinary share of Ascendis Pharma A/S. The Company plans to execute the repurchases in compliance with Rules 10b-18 and 10b5-1 of U.S. securities regulations.

In addition, the Company plans to apply net settlement of the tax-withholding obligation in certain jurisdictions related to the vesting of approximately 450,000 RSUs for a total cash amount of approximately $9 million preserving approximately 75,000 ADSs held as treasury shares (the Net Settlement of RSUs).

Together, the Share Repurchase Program and the Net Settlement of RSUs are intended to preserve approximately 200,000 ADSs held as treasury shares.

The new Share Repurchase Program authorizes the repurchase of up to $18.25 million of the Company’s ADSs. Purchases under the new Share Repurchase Program may be made from time to time, in such amounts as management deems appropriate, through a variety of methods, which may include open market purchases, privately negotiated transactions, block trades, accelerated share repurchase transactions, purchases through 10b5-1 trading plans, or by any combination of such methods. The timing and amount of any repurchases pursuant to the new Share Repurchase Program will be determined based on market conditions, share price and other factors. The new Share Repurchase Program does not require the Company to repurchase any specific number of shares, and may be modified, suspended or terminated at any time without notice.

About Ascendis Pharma A/S



Ascendis Pharma is applying its innovative TransCon technology platform to build a leading, fully integrated biopharma company focused on making a meaningful difference in patients’ lives. Guided by its core values of Patients, Science, and Passion, Ascendis uses its TransCon technologies to create new and potentially best-in-class therapies. Ascendis is headquartered in Copenhagen, Denmark and has additional facilities in Europe and the United States. Please visit


ascendispharma.com


to learn more.

Forward-Looking Statements



This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this press release regarding Ascendis’ future operations, plans and objectives of management are forward-looking statements. Examples of such statements include, but are not limited to, statements relating to (i) the planned Share Repurchase Program, (ii) the planned Net Settlement of RSUs, (iii) Ascendis’ ability to apply its TransCon technology platform to build a leading, fully integrated biopharma company, and (iv) Ascendis’ use of its TransCon technologies to create new and potentially best-in-class therapies. Ascendis may not actually achieve the plans, carry out the intentions or meet the expectations or projections disclosed in the forward-looking statements and you should not place undue reliance on these forward-looking statements. Actual results or events could differ materially from the plans, intentions, expectations and projections disclosed in the forward-looking statements. Various important factors could cause actual results or events to differ materially from the forward-looking statements that Ascendis makes, including the following: dependence on third party manufacturers, distributors and service providers for Ascendis’ products and product candidates; unforeseen safety or efficacy results in Ascendis’ development programs or on-market products; unforeseen expenses related to commercialization of any approved Ascendis products; unforeseen expenses related to Ascendis’ development programs; unforeseen selling, general and administrative expenses, other research and development expenses and Ascendis’ business generally; delays in the development of its programs related to manufacturing, regulatory requirements, speed of patient recruitment or other unforeseen delays; Ascendis’ ability to obtain additional funding, if needed, to support its business activities; the impact of international economic, political, legal, compliance, social and business factors. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to Ascendis’ business in general, see Ascendis’ Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission (SEC) on February 12, 2025, and Ascendis’ other future reports filed with, or submitted to, the SEC. Forward-looking statements do not reflect the potential impact of any future licensing, collaborations, acquisitions, mergers, dispositions, joint ventures, or investments that Ascendis may enter into or make. Ascendis does not assume any obligation to update any forward-looking statements, except as required by law.

Ascendis, Ascendis Pharma, the Ascendis Pharma logo, the company logo, and TransCon are trademarks owned by the Ascendis Pharma Group. © February 2025 Ascendis Pharma A/S.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.